Gold Price Forecast: XAU/USD stays bullish beyond $1,930 – Confluence Detector – FXStreet

Gold Price (XAU/USD) aptly portrays the pre-NFP trading lull as bulls take a breather above the key support confluence while bracing for the second consecutive weekly gain. In doing so, the XAU/USD also portrays the market’s indecision about the Federal Reserve’s (Fed) next move as the latest round of US economics hasn’t been supportive to policy hawks, which in turn highlights today’s US jobs report for decision-making.
That said, the recent price pressure data from the US suggests ‘sticky’ service inflation and an absence of major reductions in the activities. However, the downbeat sentiment and unimpressive prints of the early signals surrounding the US employment conditions prod the rate hike expectations.
Elsewhere, a slew of measures from China to defend the economy from slipping back into COVID-like days seem to put a floor under the Gold Price, due to Beijing’s status as one of the top XAU/USD customers. Among them, the People’s Bank of China’s (PBoC) 2.0% cut to the foreign exchange reserve ratio and a reduction of the Yuan deposit rates by multiple Chinese banks gained major attention.
It’s worth noting that the broad view of an end to the rate hike trajectory, amid recently softer inflation numbers from the top-tier economies, seems to defend the Gold buyers.
Moving on, US Nonfarm Payrolls (NFP), Unemployment Rate and Average Hourly Earnings for August will be crucial for clear directions as the last few months of data have teased the Fed doves, suggesting a need for the strong outcomes to prod Gold Price upside.
Also read: Gold Price Forecast: Will XAU/USD break above 100 DMA at $1,955 on weak US Nonfarm Payrolls?
As per our Technical Confluence indicator, the Gold Price floats firmly beyond the $1,932 support confluence despite the latest retreat. That said, the stated key support comprises the 50-DMA, Pivot Point one-week R1 and 5-DMA.
Also restricting the short-term downside of the XAU/USD is the $1,936 level encompassing the 61.8% Fibonacci retracement on one-month.
It’s worth noting, however, that the Gold Price weakness past $1,930 makes it vulnerable to drop towards the $1,916 support confluence comprising the middle band of the Bollinger on the daily chart, Fibonacci 38.2% on one-month and 10-DMA.
Alternatively, the Fibonacci 38.2% on one-day guards immediate recovery of the Gold Price near $1,945.
Following that, a convergence of the 100-DMA and Pivot Point one-day R3 will act as the last defense of the XAU/USD sellers around $1,955, a break of which could propel the Gold Price towards the multiple hurdles marked during May and July around $1,985.
Overall, the Gold Price has fewer barriers toward the north but the US employment data can test the bulls.
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Join Telegram
EUR/USD is battling 1.0600 on its road to recovery in the European session on Tuesday. The pair is drawing support from a pause in the US Dollar rally alongside the US Treasury bond yields, as risk sentiment stabilizes. US data awaited. 
GBP/USD is off the lows but remains pressured below 1.2200 in the European session on Tuesday. A mild improvement in risk sentiment has capped the US Dollar rally, aiding the pair's rebound. Mid-tier US economic data next in focus. 
Gold price (XAU/USD) recovers a bit from a one-and-half-week low touched this Tuesday and trades just below the $1,1915 level during the early European session, down 0.10% for the day.
Bone ShibaSwap, also known as BONE, is one of the few meme coins that had a positive run on Monday. The meme coin is slowly emerging into an entity of its own, provided it can attract enough users to fuel its long overdue recovery. 
The United States (US) CB Consumer Confidence is expected to have extended its decline in September after trimming June and July gains in August. The index is foreseen at 105.5 in September.     
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top